Answer:
8%
Step-by-step explanation:
Interest = $112
Principal = $1400
Rate = Percentage Per Year
Time = 1 Year
I = PRT
[tex]112 = (1400 )(R)(1)[/tex]
Multiply everything together...
[tex]\frac{112}{1400} = \frac{1400R}{1400}[/tex]
Divide both sides by 1400.
[tex]\frac{112}{1400} = R[/tex]
Simplify.
[tex]\frac{112}{1400} = \frac{2}{25}[/tex]
[tex]\frac{2}{25} = 0.08[/tex]
Simplify the fraction. Feel free to flip the equation (Put the R on the right side of the = instead of the left).
[tex]\frac{2}{25} = 0.08[/tex]
Change the fraction into a decimal.
[tex]R = 0.08[/tex]
Turn this number into a percentage and we have our answer:
R = 8% per year
